Looks like the real Wolf of Wall Street lost his signature cool during a sit-down with Australian 60. WATCH: ‘Wolf of Wall Street’ Jordan Belfort Blows Up on Australian ’60 Minutes’. His life-story is currently being turned into a major motion picture by Warner Brothers, with. He is a frequent guest-commentator on CNN, CNBC, Headlines News and the BBC. Jordan’s two bestselling books have been published in forty-three countries and translated into eighteen different languages. Jordan Belfort - The Wolf of Wall Street.

GameStop, founded a year before Blockbuster, is part of a dwindling cohort of IRL businesses that are being starved by online marketplaces. Leonardo DiCaprio / Jonah Hill / Margot Robbie / Matthew McConaughey / Kyle Chandler / Rob Reiner / Jon Bernthal / Jon Favreau / Jean On the surface, this doesn’t make sense. Based on the true story of Jordan Belfort, from his rise to a wealthy stock-broker living the high life to his fall involving crime, corruption and the federal government.

For a while, the idea that r/WallStreetBets would take over GameStop was a joke — but then it turned serious, Bloomberg reported. There is a Reddit forum for this, r/WallStreetBets, which describes itself as being “like 4chan found a Bloomberg Terminal.” A year ago, a user called delaneydi argued that GameStop was underpriced by the market. Jordan Belfort, whose memoir was used to create the Martin Scorsese's critically acclaimed movie.Currently, many people are at home and bored, and consequently, interest in day trading has shot through the roof. GameStop’s business has been suffering as a result.The former Wall Street trader turned motivational speaker is bringing his stories to the TV screen.

There are several other bad things that can also happen, such as an increase in fees or the original investor wanting their stock back. This can make you a lot of money, especially if the company goes bankrupt and you don’t have to return the stock!The thing about short selling, though, is that you lose money if the stock goes up, and your losses are potentially infinite if the stock keeps going up. Typically, this is done by short selling — a practice where you borrow shares for a fee and sell them for (ideally) a high price, then buy them back at (ideally) a lower price to return them.

If you are feeling confident in a stock, you can buy a call option — which lets you buy a stock at a specific price on a specific date.Let’s say my fake investing firm wants to buy a call option on Company X. In addition to letting you buy and sell stock, you can easily buy an option for stock, instead of the stock itself. Some people will notice that kind of thing and think, Hm, this stock is prime for a short squeeze! Basically, because so many people are short, it may be possible to trigger a chain reaction where you buy enough stock to send the price up, forcing some shorts to cover, sending the price up further, forcing more shorts to cover, and so on.For retail investors, this process has gotten easier and cheaper because of apps such as Robinhood. “Short interest is 71.2 million shares, while GameStop has only 69.7 million shares outstanding,” Matt Levine of Bloomberg points out.

In that case, my losses are limited to whatever fees I paid for my options — I just never buy the shares. As a result, I make a profit of $30 per share, minus whatever fees I paid for the options.Stocks are memes now, and you trade them to show off to your friendsOn the other hand, maybe I bet badly and Company X only gets up to $20. Or I can continue to hold onto them until March 1st, when I take delivery of the 100 shares, which are now trading at $55 a share, and immediately sell them. I can sell my options for more than I paid for them, if I want. This contract is usually cheaper than the share price.So let’s say Company X goes on an epic run in February, and by February 15th, it’s up to $50 a share. I feel confident in Company X, so I buy options that let me buy 100 shares of Company X stock for $25 a share on March 1st.

Plus, there’s a social aspect to the trades — which is where r/WallStreetBets come in. But Robinhood makes the option trades easy and free. That makes the stock go up, and the further up the stock goes, the more stock my counterparty will have to buy.Options were once a fairly sophisticated thing to trade — something ordinary people didn’t really do. The outfit that sold me the options is going to try to reduce the risk that my options will hurt them, and they will do this by buying stock in Company X. If risk is your idea of fun, options are great!Now, someone has to be on the other end of my trade. But it means there’s a lot more upside as well, because I didn’t have to spend all the money on the stock upfront.

As of January 26th, short-sellers have been trolled out of about $5 billion in 2021, just from their GameStop positions alone.What does Robinhood have to do with this? Well, it makes options trading much more accessible to retail investors — but there’s something else. The soaring stock meant some shorts had to cover, sending the stock up further. This drove up the stock price for GameStop, as their counterparties had to load up on stock to balance, and then more stock as more people bought options and so on. Time to troll Wall Street out of a fuckload of money!GameStop’s short-sellers have been trolled out of about $5 billion in 2021The fine people of r/WallStreetBets decided GameStop was undervalued, and the stock would go up, so they put up a bunch of posts about how they were buying GameStop options. The professional short-sellers who created the possibility of a short squeeze underestimated the day traders’ sophistication, and r/WallStreetBets pounced.

It’s theoretically possible to “‘front run’ orders by, for example, jumping ahead of a customer’s stock purchase to buy it themselves, making a small gain if the share price increases,” the Financial Times explains. The practice is controversial, though, because some critics say it harms investors. The argument in favor of this practice is, essentially, retail investors get better prices than they would on the open market, Bloomberg’s Levine writes. It pockets the difference between the price to buy and sell, known as the spread,” according to the Financial Times. Citadel Securities makes its money on these orders by “automatically taking the other side of the order, then returning to the market to flip the trade. This phenomenon, which other brokerages are engaged in as well, is called payment for order flow.

The company says its customers are mostly “buy and hold” investors, not reckless ones. The company paid a $65 million fine in December to settle charges, and the practices the SEC objected to “do not reflect Robinhood today,” Dan Gallagher, the brokerage’s chief legal officer, told Business Insider.Wall Street can also get in on screwing Wall StreetWhen asked for comment, Robinhood referred to an op-ed published by Vlad Tenev, the company’s CEO and co-founder. According to the SEC, Robinhood investors got second-rate prices, which cost them a collective $34.1 million.

(I actually don’t know what several of them do.) I am a buy-and-hold investor because I am a bore, but as of today I’m a bore who’s up 30 percent. The Verge’s ethics policy forbids us from directly trading stock in companies we cover, so for research purposes I picked six stocks that belong to companies I don’t cover because their earnings were next on the calendar. And the market’s frothy, too in July, I joined Robinhood to see how it works. And by bailing out Melvin, Griffin got “a rare opportunity to invest in a talented manager on the cheap,” according to Bloomberg.What does this have to do with GameStop itself? Absolutely nothing — this is a weird game now. (Citadel is a hedge fund, not a market maker.) Both firms were founded by the same guy, though: Ken Griffin.

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